401(k) Best Practices Model

Our Pledge…

• Monitor investment options and provide analytical reports to the Investment Committee
• Recommend changes to the plan’s investment options when needed
• Frequently monitor participant-directed activity and provide necessary education
• Oversee distribution of enrollment materials and confirm required notices are provided to eligible participants
• Prepare a customized Investment Policy Statement for the plan and update it on an annual basis
• Analyze the plan’s target date of lifestyle funds for prudent fiduciary protection
• Benchmark the plan against the industry peer group every 3 years and consider alternative providers if warranted
• Review plan documents annually to ensure suitability and recommend changes if warranted
• Provide and implement an Education Policy for the plan
• Consistently interface with the Plan Sponsor’s investment provider and advocate for them on all operational levels
• Automatically enroll participants at a deferral of 6% of salary (While more than half of 401(k) plans auto enroll participants, only 16% of 403(b)s do.), the PSCA survey found
• Automatically escalate deferrals each year up to 10% of salary
• Do a re-enrollment to sweep in all employees not participating or not participating at a 6% deferral rate
• Choose an appropriate qualified default investment alternative for the plan
• Stretch the match to get employees to save more
• Streamline the plan’s investment lineup and monitor them regularly

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We Can Help

If you’d like a complimentary 401(k) audit, please fill out the contact form below. We look forward to speaking with you.

DISCLAIMER: Advisory Services offered through Prosperity Financial Group, Inc., an Independent Registered Investment Advisor. Securities offered through Fortune Financial Services, Inc. Member FINRA/SIPC. Prosperity Financial Group, Inc. and Fortune Financial Services, Inc. are separate entities.